Financial Daily from THE HINDU group of publications
Friday, Jan 07, 2005
Financial Daily from THE HINDU group of publications Friday, Jan 07, 2005 |
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Markets
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Stock Markets Columns - Ear to the ground Reliance on a different stroke
INDEX heavyweight Reliance Industries stock price has remained stable in the last two trading sessions despite sharp fall in major stock indices. Dealers said there are various reasons for it. One factor is that the market players are still upbeat on the stock despite the on-going controversy between the Ambani brothers. Another reason is the company's plan to buy back shares. The talk in the market indicates that none of the players is selling heavily as they feel that the company would start buying the shares at lower levels (after receiving all regulatory approvals for going ahead with buy-back). Moreover, the view is that the stock price of Reliance did not move in line with the rise in stock indices in the last few months. Dealers said this means that not enough positions were built-up in the stock compared with other stocks. On Thursday, the stock closed at Rs 525.95, down 0.75 per cent on the BSE with volume of 33.29 lakh shares. On the NSE, it closed at Rs 526.20, down 0.71 per cent with volume of 65.67 lakh shares. Expecting good Q3 show STERLITE Optical, maker of optical fibre cables, gained on Thursday despite bearish sentiment prevailing in the market. Dealers said there is buying in the stock on expectation of a good third quarter financial performance. In the second quarter, the company reported marginal profits from loss in the previous quarters. The talk is that third quarter results would be better. This is due to the company's new focus. The company has decided to export especially to China where it has received good business. Moreover, the expectation of rise in international optical fibre cable prices is also bring interest in the stock. On Thursday, the stock gained 8.17 per cent at Rs 86.75 on the BSE with volume of 27.17 lakh shares. On the NSE, it closed at Rs 86.40, up 8 per cent with volume of 31.39 lakh shares. Mid-caps stay favourites THE interest for mid-cap stocks seems to continue despite the overall sell-off in the market. This is seen from fall in NSE's Mid-cap index falling lower that the Nifty Junior and S&P CNX Nifty on Thursday. Nifty fell 1.67 per cent, Nifty Junior by 2.17 per cent and CNX Mid-Cap 200 index by 1.38 per cent. In fact, the mid-cap index was least to fall among all the indices of NSE. Dealers said the interest in mid-cap is still there as several mutual funds, which have recently launched scheme for investing in mid-cap stocks, are buying them. Another reason is that several market players are not selling as their positions in mid-cap stock is not very high and most of them feel that these stocks are still undervalued compared to overall market.
Virendra Verma
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